Under the settlement terms [PDF], Toyota will set aside an estimated $1.2-1.4B USD, making the settlement agreement the biggest in automotive history, according to Mr. Berman's team. The settlement fund will be used to compensate the owners of 3.25m Toyota vehicles for lost resale value. The owners will also be eligible for free installation of a brake-override system.

Mr. Berman praised Toyota's decision to settle the outstanding litigation and move ahead, commenting, "After two years of intense work, including deposing hundreds of engineers, poring over thousands of documents and examining millions of lines of software code, we are pleased that Toyota has agreed to a settlement that was both extraordinarily hard-fought and is exceptionally far-reaching."

Toyota chief North American legal officer -- Christopher P. Reynolds -- sought to take the opportunity to restate Toyota's point that its electronic systems were never proven to have issues, remarking, "This was a difficult decision -- especially since reliable scientific evidence and multiple independent evaluations have confirmed the safety of Toyota’s electronic throttle control systems."

3.25 million vehicles are covered by the settlement. [Image Source: AP]

He adds, "[Ultimately] we concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers."

Toyota certainly has enough resources to cover the settlement. The company witnessed a rocky 2011 due to parts shortages from the tsunami and related domestic issues (see: Fukushima nuclear disaster). But this year Toyota is expected to regain the sales crown, which was last year held by General Motors Comp. (GM). Toyota is expected to announce sales rose 22 percent in 2012 to 9.7m vehicles, despite a Chinese boycott due to a territorial spat, more government fines, and more recalls.